Stock Plans and Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Schedule of Assumptions Used in Determining Fair Value of Stock Option Grants

The fair value of stock option grants and ESPP are determined using the Black-Scholes option pricing model with the following weighted average assumptions. In addition, the fair value per share on grant date is presented below: 

	Three Months Ended March 31,
	2018		2017
Employee Stock Options:
Fair value per share on grant date	$33.06		$18.05 - $18.78
Expected term (in years)		6.00	6.00 - 6.11
Expected volatility	50%		60%
Risk-free interest rate	2.72%		1.98% - 2.47%
Dividend rate	0%		0%
Employee Stock Purchase Plan:
Expected term (in years)		0.50		0.50
Expected volatility	50% - 60%		60%
Risk-free interest rate	1.18% - 1.93%		0.45%
Dividend rate	0%		0%

⁽¹⁾ The expected term represents the period that the stock-based compensation awards are expected to be outstanding. Since the Company did not have sufficient historical information to develop reasonable expectations about future exercise behavior, the Company used the simplified method to compute expected term, which reflects the average of the time-to-vesting and the contractual life;

⁽²⁾ The expected volatility of the Company’s common stock on the date of grant is based on the volatilities of publicly traded peer companies that are reasonably comparable to the Company’s own operations;

⁽³⁾ The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the expected term of the options; and

⁽⁴⁾ The expected dividend yield is assumed to be zero as the Company has never paid dividends and has no current plans to pay any dividends on the Company’s common stock.

Schedule of Stock Option Activity

A summary of activities under the 2008 Plan and the 2016 Plan is shown as follows for the year ended December 31, 2017 and the three months ended March 31, 2018:

	Stock options outstanding			Weighted average exercise price
Outstanding at December 31, 2016		1,884,425		$	10.02
Granted		1,096,881			22.84
Exercised		(497,175	)		5.77
Forfeited		(43,841	)		15.60
Outstanding at December 31, 2017		2,440,290			16.55
Granted		459,353			33.06
Exercised		(153,744	)		9.53
Forfeited		(28,366	)		11.30
Outstanding at March 31, 2018		2,717,533		$	19.79

Schedule of Stock Options Outstanding and Options Exercisable and Vested

Stock options outstanding, and options exercisable and vested are as follows:

Outstanding as of March 31, 2018		Remaining contractual life (years)		Weighted average exercise price		Exercisable as of March 31, 2018		Remaining contractual life (years)		Weighted average exercise price
	2,717,533		8.42	$	19.79		740,424		6.97	$	11.45

Outstanding as of December 31, 2017		Remaining contractual life (years)		Weighted average exercise price		Exercisable as of December 31, 2017		Remaining contractual life (years)		Weighted average exercise price
	2,440,290		8.28	$	16.55		748,148		7.00	$	10.39

Schedule of Vested and Nonvested Stock Option Activity

Vested and nonvested stock option activity was as follows:

	Vested				Nonvested
	Options outstanding		Weighted average exercise price		Options outstanding		Weighted average exercise price
Outstanding at March 31, 2018		740,424	$	11.45		1,977,109	$	22.91
Outstanding at December 31, 2017		748,148	$	10.39		1,692,142	$	19.27

Schedule of Restricted Stock Unit Activity and Market-based Restricted Stock Unit Activity

A summary of activity in connection with the Company’s RSUs and market-based RSUs for the period ended March 31, 2018 is as follows:

	Number of Shares
Outstanding as of December 31, 2017		784,000
Granted		107,500
Vested		(222,624	)
Forfeited		(1,000	)
Outstanding as of March 31, 2018		667,876

Summary of Activity In Connection With RSUs and Market-based RSU

The Company recorded the total stock-based compensation expense as follows (in thousands):

	Three Months Ended March 31,
	2018		2017
Cost of revenue	$	625	$	65
Sales and marketing		2,435		277
Research and development		1,310		146
General and administrative		2,324		480
Total	$	6,694	$	968